Intel CEO's potential China links a warning for U.S. companies
President Donald Trump called for Intel CEO Lip-Bu Tan to resign, another signal of the administration's heightened focus on competition and support for domestic manufacturing.
President Donald Trump's recent call for Intel CEO Lip-Bu Tan to resign indicates U.S. businesses will need to heavily scrutinize their relationships with China to stay within the administration's good graces.
Earlier this week, U.S. Senator Tom Cotton (R-Ark.), sent a letter to Intel expressing concern over Tan's investments and ties to semiconductor companies allegedly linked to China. Cotton pointed to Tan's previous role as CEO of Cadence Design Systems, a computer software company that pled guilty to illegally selling export-controlled U.S. technology to entities with ties to the Chinese military. Following the letter, Trump posted on Truth Social calling for Tan to resign immediately.
Tan responded Thursday, noting that he has lived in the U.S. for more than 40 years. He said he loves the U.S. and that misinformation has circulated about his previous roles at Cadence Design Systems and venture capitalist firm Walden International. Tan said Intel is engaging with the administration to address the concerns that have been raised.
"I fully share the president's commitment to advancing U.S. national and economic security," Tan said in a statement. "I appreciate his leadership to advance these priorities, and I'm proud to lead a company that is so central to these goals."
Daniel Castro, vice president of the Information Technology and Innovation Foundation, said Trump's concerns indicate the administration is taking the technology and economic competition with China seriously.
It's not the president's role to decide who should lead a U.S. company, but it is within his purview to voice competition and national security concerns, Castro said.
"Companies must always adapt to changing external conditions, whether market-driven or political," Castro said. "More than anything, this move sends a warning to other corporate leaders and boards: If they want the backing of this administration, they must take seriously how they engage with China on advanced technologies."
Intel's struggles continue
The U.S. government has made significant investments in domestic chip manufacturing, including with the CHIPS and Science Act of 2022 under former President Joe Biden.
The Biden administration awarded Intel up to $7.86 billion in direct funding from the CHIPS Act to help build new facilities in Arizona and Ohio and modernize facilities in New Mexico and Oregon. Shortly following the award, Intel CEO Pat Gelsinger was ousted. Intel brought on Tan to lead the company in March 2025.
The U.S. government has committed significant resources, including funding, to help Intel improve its technology and build modern U.S. facilities, according to Thomas Duesterberg, a senior fellow at the Hudson Institute.
"They're dependent on goodwill with the U.S. government," Duesterberg said of Intel. "It's a terrible sign that they've gotten crosswise with the president himself."
Duesterberg said Intel's board of directors will have to do "some really hard thinking about where to go from here." If Intel plans to continue building facilities in the U.S., they will need continued support from the U.S. government as Trump focuses on competition with China, he said.
"It's a sign that the perception is China really is catching up," Duesterberg said.
Ultimately, the president's focus on competition with China places a spotlight on actions by U.S. companies that could potentially raise national security concerns, Castro added.
"President Trump has also called on Silicon Valley to be more 'patriotic,' meaning to align with his America First agenda by prioritizing U.S. jobs and investment over foreign ones," he said.
Apple commits $100 billion to U.S. manufacturing
While placing scrutiny on the Intel CEO's China ties, Trump also secured an additional commitment from Apple to manufacture critical components in the U.S. in a continued push toward domestic manufacturing.
Trump this week vowed 100% tariffs on chip imports unless U.S. companies made a commitment to produce critical components domestically.
Duesterberg said Apple has not previously had a significant semiconductor manufacturing presence, which signals the company is taking Trump seriously by announcing plans to build out its manufacturing capability.
Apple's $100 billion investment includes launching its American Manufacturing Program and builds on the company's existing $600 billion investment commitment.
"Trump's made no secret of his insistence on rebuilding the semiconductor industry, including the manufacturing part of it," Duesterberg said.
Makenzie Holland is a senior news writer covering big tech and federal regulation. Prior to joining Informa TechTarget, she was a general assignment reporter for the Wilmington StarNews and a crime and education reporter at the Wabash Plain Dealer.
